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Introduction
    Eligibility Requirements
 Corporate Officer Eligibility .
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Spousal Eligibility .
 1)
    
    the spouse and Retiree must be legally married under the law
of the State in which they reside;2)
    
    a spouse who becomes the spouse of a Retiree after the date
the Retiree retires from the Company is not eligible for benefits under the
Plan;3)
    
    long term care coverage is not available to a spouse who is
not the original spouse with respect to whom the Company provided long term
care coverage on or after the date the Corporate Officer reached age 55 with 5
years of service;4)
    
    long term care coverage is not available to a spouse who
becomes the spouse of a Corporate Officer after the Corporate Officers long
term care coverage began.
  No Guarantee of Coverage .
 Description of Benefits
 Long Term Care Insurance Coverage .
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Example: Corporate Officer continues in active employment after reaching age 55 with 5 years of
service. Long term care coverage for the Officer and the Officers spouse begins during active
employment when the Officer reaches age 55. The Officer retires from the Company at age 58. Long
term care coverage commences immediately (continues) upon retirement under the Plan and, subject to
the terms of the Plan, the Company pays the premiums for the Officers and Eligible Spouses
coverage until the Officer reaches age 65, the end of the ten year period that began when coverage
commenced.
 Medical and Dental Insurance Coverage .
 th th
 Example: Corporate Officer retires from the Company immediately upon reaching age 55 with 5 years
of service. The Officer does not elect to purchase coverage under the Plan. The Officer
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must notify the Company 90 days prior to the Officers 60 th birthday that the Officer
wishes to enroll for medical and dental coverage under the Plan effective as of the Officers
60 th birthday. If the Officer completes and returns the enrollment material in a timely
manner and the insurance carrier(s) and/or HMO(s) approve the enrollment, Company subsidized
medical and dental coverage will commence on the first coverage entry date on or after the
Officers 60 th birthday. Even if the Officers Eligible Spouse reached age 60 prior to
the Officer reaching age 60, subsidized coverage for the Eligible Spouse would not begin until the
Officer reached age 60.
   Example 1: Corporate Officer retires from the Company at age 60 with 10 years of service. The
Officers Eligible Spouse is age 63 at the time the Officer retires. Medical and dental coverage
for the Officer and Eligible Spouse begin immediately upon the Officers retirement. The Eligible
Spouses subsidized medical insurance coverage terminates on the Eligible Spouses 65 th birthday and the Eligible Spouse becomes eligible for medical insurance premium reimbursements
(described below). The Eligible Spouse is responsible for taking steps to obtain individual
medical insurance coverage. The Officers medical insurance coverage continues until the Officer
reaches age 65, subject to the terms of the Plan. The Officers and Eligible Spouses subsidized
dental insurance coverage continues subject to the terms of the Plan.
 Example 2: Corporate Officer retires from the Company at age 63 with 13 years of service. The
Officers Eligible Spouse is age 61 at the time the Officer retires. Medical and dental coverage
for the Officer and Eligible Spouse begin immediately upon the Officers retirement. The Officers
subsidized medical insurance coverage terminates on the Officers 65 th birthday. The
Eligible Spouse is age 63 on the Officers 65 th birthday and remains eligible for
continued subsidized medical insurance coverage (at a reduced Company contribution rate beginning
on the date of the Officers 65 th birthday, as described below) until the Eligible
Spouse reaches age 65, at which time the Eligible Spouses subsidized medical insurance coverage
terminates and the Eligible Spouse becomes eligible for medical insurance premium reimbursements
(described below). The Officers and Eligible Spouses subsidized dental insurance coverage
continues subject to the terms of the Plan.
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Example: Officer 1 is not married and retires from the Company in 2007 at age 63 with 13 years of
service. Medical and dental coverage for Officer 1 begins immediately and the Company contribution
toward the cost of coverage is equal to$230.48 per month for medical insurance coverage and $20.28
per month for dental insurance coverage. The 2007 Company contribution amounts represent 72% of
$320.11, the monthly cost for one-person medical coverage under the base medical plan and 72% of
$28.17, the monthly cost for one-person coverage under the base dental plan.
 Officer 2 is not married and retires from the Company in 2008 at age 63 with 13 years of service.
Medical and dental coverage for Officer 2 begins immediately. For 2008, assume that the monthly
cost for one-person coverage under the base medical plan is $400 and the monthly cost for
one-person coverage under the base dental plan is $45. For Officer 2, the Company contribution
toward the cost of coverage is equal to $288 per month for medical insurance coverage (72% of $400)
and $32.40 for dental insurance coverage (72% of $45). For Officer 1, the Company contribution
toward the cost of coverage for 2008 is equal to $237.39 for medical insurance coverage and $20.89
for dental insurance coverage. The reason for the difference in the Companys contribution toward
the cost of coverage for Officer 1 and Officer 2 in 2008 is that the increase in the Companys
contribution toward the cost of coverage for Officer 1 in 2008 is limited by the 3% cap on
increases.
 Example 2
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Example: Corporate Officer retires from the Company in 2007 at age 63 with 10 years of service.
Officers Eligible Spouse is age 58 at the time the Officer retires. The cap amounts applicable
for Officers who retire in 2007 are $230.48 for Retiree-only medical insurance coverage, $518.57
for Retiree and Eligible Spouse medical insurance coverage, $20.28 for Retiree-only dental
insurance coverage and $58.14 for Retiree and Eligible Spouse dental insurance coverage. The
medical and dental coverage for the Officer and Eligible Spouse begin immediately upon the
Officers retirement and the Officer and Eligible Spouse are covered under two-person medical and
two-person dental coverage. The maximum Company monthly contribution toward the cost of their
coverage during 2007 is $518.57 for medical insurance coverage and $58.14 for dental insurance
coverage. Assume that for 2008 and 2009, the total cost of medical and dental insurance coverage
increases by 10% each year, so the amount of the increase in the Companys contribution for the
Officer and Spouse is 3% each year. For 2008, the maximum Company monthly contribution cap amounts
for the Officer and Eligible Spouse increase by 3% to $534.13 and $59.88 and increase by 3% again
for 2009 to $550.15 and $61.68. The Officer reaches age 65 in 2009. The Eligible Spouse is age 60
at that time.
 The Officers subsidized medical insurance coverage terminates at age 65 and the Officer becomes
eligible for medical insurance premium reimbursements (described below). The Officer is
responsible for taking steps to obtain individual medical insurance coverage. The Eligible
Spouses subsidized medical insurance coverage may continue (at the reduced Company contribution
amount, which is equal to the amount of the Retirees premium reimbursement, as described below)
until the date the Eligible Spouse reaches age 65. When the Eligible Spouse reaches age 65, the
Eligible Spouses subsidized medical insurance coverage terminates and the Eligible Spouse becomes
eligible for medical insurance premium reimbursements. The Eligible Spouse is responsible for
taking steps to obtain individual medical insurance coverage.
 Medical Premium Reimbursements .
 Example 1: Corporate Officer retires from the Company at age 60 with more than 5 years of service.
The Officers Eligible Spouse is age 64 at the time the Officer retires. Immediately upon
retirement, medical and dental insurance coverage begins for the Officer and Eligible Spouse. The
Eligible Spouse reaches age 65 and the Eligible Spouses medical insurance coverage under the Plan
terminates. The Eligible Spouse is responsible for obtaining individual medical insurance coverage
and the Eligible Spouse becomes eligible for medical premium reimbursements (in the amount
described below) for individual medical insurance coverage purchased by the Eligible Spouse. The
Officers medical insurance coverage under the Plan continues, subject to the terms of the Plan,
until the Officer reaches age 65, at which point the Officers medical insurance coverage under the
Plan terminates and the Officer becomes eligible
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for medical premium reimbursements. Dental coverage continues subject to the terms of the Plan.
 Example 2: Corporate Officer retires from the Company at age 62 with more than 5 years of service.
The Officers Eligible Spouse is age 54 at the time the Officer retires. Immediately upon
retirement, medical and dental insurance coverage begins for the Officer and Eligible Spouse. When
the Officer reaches age 65, the Officers medical insurance coverage under the Plan terminates and
the Officer is responsible for obtaining individual medical insurance coverage and becomes eligible
for medical premium reimbursements (in the amount described below) for individual medical insurance
coverage purchased by the Officer. The Eligible Spouse may continue to receive subsidized medical
insurance under the Plan (at the reduced Company contribution amount beginning when the Officer
reaches age 65) until the Eligible Spouse reaches age 65. When the Eligible Spouse reaches age 65,
the Eligible Spouses medical insurance coverage terminates and the Eligible Spouse is responsible
for obtaining individual medical insurance coverage and becomes eligible for medical premium
reimbursements (in the amount described below) for individual medical insurance coverage purchased
by the Eligible Spouse. As described above, although the Eligible Spouses subsidized medical
insurance coverage continues until the Eligible Spouse reaches age 65 (subject to the terms of the
Plan), the amount of the Companys contribution toward the cost of the Eligible Spouses medical
insurance coverage is reduced beginning on the date the Officer reaches age 65. Dental coverage
continues subject to the terms of the Plan.
  Example: Corporate Officer retires from the Company in 2007 at age 60 with 10 years of service.
In 2007, when the Officer retires, the capped amount for medical premium reimbursements is $53.28
(as described below). Medical and dental coverage for the Officer begins immediately upon the
Officers retirement. When the Officer reaches age 65 in 2012, the Officers medical insurance
coverage terminates and the Officer is responsible for obtaining individual medical insurance
coverage and becomes eligible for medical insurance premium reimbursements. The maximum monthly
reimbursement amount for the Officer in 2012 is $61.78, determined by increasing the $53.28 capped
amount 3% each year after 2007.
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Example: Corporate Officer retires from the Company in 2007 at age 60 with 10 years of service.
In 2007 when the Officer retires, the capped amount for medical premium reimbursements is $53.28.
The Officers Eligible Spouse is age 63 at the time the Officer retires. Medical and dental
coverage for the Officer and Eligible Spouse begin immediately upon the Officers retirement. When
the Eligible Spouse reaches age 65 in 2009, the Eligible Spouses medical insurance coverage
terminates and the Eligible Spouse is responsible for obtaining individual medical insurance
coverage and becomes eligible for medical insurance premium reimbursements. The maximum monthly
reimbursement amount for the Eligible Spouse in 2009 is $56.53.
 Surviving Spouse Benefits
  Long Term Care Insurance Coverage .
 Example: Corporate Officer continues in active employment after reaching age 55 with 5 years of
service. Long term care coverage for the Officer and the Officers spouse begins during
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active employment when the Officer reaches age 55. At that time, the Officers spouse is age 50.
The Officer retires from the Company at age 58. Long term care coverage commences immediately
(continues) upon retirement under the Plan and the Company pays the premiums for the Officers and
spouses coverage. The Officer dies at age 62. The Company pays the premiums for the Surviving
Spouses coverage until the Surviving Spouse reaches age 60, which is the end of the 10 year period
during which the Company pays for coverage.
 Medical and Dental Insurance Coverage .
   Medical Premium Reimbursements .
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Provisions Applicable to Medical and Dental Insurance Coverage
  Annual Enrollment Period .
 Certificate of Creditable Coverage .
  Medicaid-Eligible Individuals .
 Mastectomy Benefit Coverage .
 Minimum Stay for Mothers and Newborns .
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COBRA Continuation Coverage for Spouses .
  th
   1)
    
    The required premiums are not paid on a timely basis.2)
    
    The maximum 36 month continuation coverage period expires.3)
    
    The Company ceases to provide any group health coverage to
any employees.
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4)
    
    The date the spouse becomes covered under another group
health plan that does not contain any exclusion or limitation with respect to
a preexisting condition of the spouse.5)
    
    The date the spouse becomes entitled to Medicare.
 Termination of Participation
  1)
    
    all participation for the Retiree terminates on the date the Retiree
dies;2)
    
    with respect to medical and/or dental insurance coverage
under the Plan, coverage terminates on the last day of the period for which
the Retiree has paid the required contribution for coverage, if the Retiree
fails to timely make a required contribution (the Company shall establish a
policy regarding the payment of required contributions, which policy shall
provide a 60 day grace period following notification to the Retiree before
coverage is terminated);3)
    
    with respect to the Companys continued payment of long term
care premiums, the Companys payment of such premiums terminates on the date
the Retiree begins to work in full-time employment after retirement from the
Company; or4)
    
    with respect to subsidized medical and dental coverage and
medical premium reimbursements under the Plan, benefits terminate on the date
the Retiree begins to work in full-time employment at which the Retiree is
eligible for medical benefits after retirement from the Company.
  1)
    
    the date the Retiree ceases to participate in the Plan, unless
the Retirees participation ceases due to the Retirees death and the Eligible
Spouse is eligible for surviving spouse benefits;2)
    
    in the case of an Eligible Spouses medical and/or dental
insurance coverage, coverage terminates on the last day of the period for which
the Eligible Spouse has paid the required contribution for coverage, if the
Eligible Spouse fails to timely make a required contribution (the Company shall
establish a policy regarding the payment of required contributions, which
policy shall provide a 60 day grace period following notification to the
Eligible Spouse before coverage is terminated);3)
    
    in the case of a surviving spouses coverage, the date the
surviving spouse remarries;
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4)
    
    all participation for the Eligible Spouse terminates on the
date the Eligible Spouse dies or is divorced from the Retiree.
   Amendment or Termination of Plan
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Claim Procedures
    Discretionary Authority
  Statement of Rights
  Receive Information About Your Plan and Benefits
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Prudent Actions by Plan Fiduciaries
  Enforce Your Rights
   Assistance With Your Questions
  Address Changes
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Plan Name
  Plan Number
  Employer
 
 Employer Identification Number
  Type of Plan
  Plan Administrator
 
 Type of Administration
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Agent for Service of Legal Process
 
 Contributions/Funding
  Plan Year
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Insurance Carriers and Health Maintenance Organizations
Providing Medical and Dental Insurance Coverage
(Excluding Carriers/HMOs providing individual coverage)
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Transcat Inc.By:DateSignature of Retiree
    
    
    
    DatePrint Name of RetireeSignature of Eligible Spouse
    
    
    
    DatePrint Name of Eligible Spouse
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